Ecuador's congress has cleared the part-privatisation of the state-owned airline Linea A‚rea del Ecuador, formerly TAME. Up to 49%will be sold off to private investors, leaving the Ecuadorian air force with a 51% share.
Despite retaining ownership of the carrier, the air force is willing to relinquish operational control. The move is viewed as the only way to make Ecuador's largest airline a viable operation. The identity of any strategic partners has not been disclosed.
TAME operates a 14-aircraft fleet - composed primarily of Boeing 727-100/200s and Fokker F28 Mk 4000s, as well as BAe 748 and de Havilland Canada Twin Otter turboprops. It has suffered economic problems, despite having 92% of the domestic market.
These have been compounded by a recent spate of accidents, including the loss of a 727-100 (Flight International, 5-12 February). Fleet renewal plans were approved last April, with the Airbus A319 and Boeing 737-700 as candidates to replace its seven 727s, but TAME's poor financial position has stymied negotiations.
Source: Flight International
